But civil servants on Tyneside fear they may have no choice but to strike if the Government presses ahead with cuts in the public sector.

While industrial action would almost certainly hit frontline services, union leaders say allowing 25% cuts to budgets to go ahead would have more of an impact.

Members of unions representing the public sector met in Newcastle to discuss how to fight the proposals and called on Chancellor George Osborne to tighten up on tax collection and force the rich to pay more to help the poor.

They accused the Tory-Lib Dem coalition of “declaring war” on the North East.

But one North East Conservative MP has called on the unions to work with the Government and local MPs to help get the best deal for the region.

Demonstrations and campaigns are planned across the region over the next few months as workers gear up for the findings of a wide-scale review of public spending which will decide exactly where the axe falls.

Members of unions including Unison, the Public and Commercial Services Union (PCS), Unite, GMB, UCU, NUT and the Fire Brigades Union, say cutting public sector budgets will make the economy more unstable and will not save the billions of pounds the coalition Government claims.

Supported by the TUC, they have formed the Northern Public Services Alliance to direct a fight-back against the cuts.

A third of workers in the North East are employed in the public sector. But unions say cutting the public sector will have a knock-on effect on the private sector, where many jobs also depend on publicly-funded contracts.

They reckon 300,000 jobs in the region depend on the public sector.

Clare Williams, northern regional convener for Unison, said: “This coalition Government has made a declaration of war on public services, public sector workers their families and a declaration of war on the unemployed, elderly and vulnerable

“This Budget will put hundreds of thousands of public sector workers in the dole queue. They will have no wages to spend and I wonder how that is going to help get us out of recession.

“Regions like ours will be disproportionately devastated. Because of the level of public sector jobs in this region we’re in real danger of a double dip recession. Cutting so fast, so deep and so quickly will just plunge us further into economic crisis.

“When we get to October and the Comprehensive Spending Review I think we’re going to see something like we’ve never experienced before.

“The coalition is using the recession to reduce welfare, cut public services, attack the role of the state and bring in privatisation.”

Chris Baugh, assistant general secretary of the PCS, said: “These cuts are presented as necessary – they’re not. I don’t believe the public accepts the need for cuts. They can see they are being made to pay for a crisis not of their making.”

Graham Eastwood from Unite the Union, said: “We shouldn’t rule out any form of industrial action. We need to be prepared to challenge and fight by taking the necessary industrial action to protect our jobs, protect our services and the communities who rely on those services.”

“There were specific measures to protect areas such as the North East; the creation of a Regional Growth Fund, a three-year scheme to exempt new business from up to £5,000 of National Insurance payments, saving business in the North East £130m.

“The coalition has also announced it will protect public sector employers earning less than £21,000 from the pay freeze.

“I’m sure their members would agree, the unions should be working with us to get the best deal for the North East.”

The group Tyne and Wear Left Unity was due to stage a protest against the cuts today from 1pm at Newcastle’s Monument. They planned to set up a petition to pressurise the Government.